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V1557-18 6 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Reduction for income with a generation period exceeding two years cannot be applied to advance rent payments if income was imputed annually

A rural property owner inquired whether they could apply the 30% reduction for income with a generation period exceeding two years when receiving the remaining 20 years of rent in a single year. The Directorate General for Taxes (DGT) ruled that this is not applicable because the contract income had been imputed on an annual basis over the previous 10 years.

The question raised

Taxation of the amount that would be received in this year, and whether the reduction for income with a generation period exceeding two years is applicable. Likewise, the method for imputing the expenses for the 20 years of the lease remaining.

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